Less than two weeks after Nvidia overtook Apple in overall valuation, the GPU maker has overtaken Microsoft as the world’s most valuable company, thanks to its production of chips that are key to powering a boom in generative AI technology.
As of the close of trading on Tuesday, the company’s shares were trading at $135.58, up $4.60 from the previous day, giving it a market capitalization of $3.335 trillion. This puts it ahead of Microsoft ($3.32 trillion), Apple ($3.29 trillion) and Google ($2.17 trillion). Nvidia’s shares split 1-for-10 since June 7, causing overall stock prices to fall, but the company’s surge in value was shocking. The company’s shares are expected to rise 160% in 2024, and the company finally surpassed the $2 trillion mark in February.
In its last earnings report in May, Nvidia reported revenue of more than $26 billion ahead of the introduction of its new Blackwell GPU architecture with the B200, billed as “the most powerful chip in the world,” later this year. CEO Jensen Huang said Blackwell units will cost “between $30,000 and $40,000” each, and the company plans to release a new AI chip every year.